Prime Media
chairman
Paul Ramsay
says he supports the removal of the “reach rule" which prevents consolidation between metropolitan and regional broadcasters, saying it would “benefit all shareholders".

At the regional broadcaster’s annual general meeting in Sydney on Tuesday Mr Ramsay also said he expects the rule to be reviewed by Communications Minister
Malcolm Turnbull
as part of a broader analysis of regulation of the media and telco sectors.

“Currently the reach rule prevents Seven from acquiring Prime. Though we support the removal of the rule, so as to benefit all shareholders, we have received no word from the government in regard to its present view of the 75 per cent audience reach rule.

“However, we expect it will be reviewed by the new Minister for Communications, Malcolm Turnbull as part of his broader analysis of regulation of the media and telecommunications sectors."

Mr Ramsay said the company had decided to extend programming arrangements with Seven Network over the next 6 years to June 2019 to reduce the risk of renegotiating at a time when regional rivals WIN Corp and Southern Cross Austereo are due to renegotiate their own deals with Nine Entertainment Co and Ten Network Holdings respectively.

“Although we are paying more for our programming by entering into the new arrangement with even, we believe we have negotiated a very good deal which has given the comp longer term certainty. I think this is a great result for the company as it is really our key asset," he said.

Prime chief executive Ian Audsley said the company was “conscious that the renewal of the Seven affiliation agreement, the sale of our radio business, the distortion of the federal election and the soft and unpredictable advertising market, all during this financial year, will have an effect on our financial performance".

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Assuming current trading conditions continue, and with ad spend “unpredictable and short", the company currently expect Core net profits after tax for the 2014 financial year to be in the range of $31 million to $33 million.

“Despite a strong start to the new financial year, the advertising market has slowed," said Mr Audsley. He added that the company faces challenging trading conditions in some key markets — “particularly the Canberra and Southern NSW market, where the change of government and the Coalition’s announcement of public service job cuts has hit the market hard."